DavidD66
Expert Alumni

Deductions & credits

You can deduct the property taxes as an itemized deduction on Schedule A (subject to the $10,000 limit for state and local taxes) if your property is not "in service".  You cannot deduct the mortgage interest on Schedule A whether the property is rented or not.  The mortgage interest deduction is limited to your primary residence and a second home.  It does not include mortgage interest on investment or rental properties.  

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